Question

Read the short scenario and answer the question that follows.

Answer 1

Answer:

B

Step-by-step explanation:

Use the amortisation formula:

A = P (r(1+r)^n)/((1+r)^n - 1)

swap in your numbers

p = 969.16

A = 20

n = 0.1524/12

20 = 969.16((0.1524/12) (1+(0.1524/12))^n) / ((1+(0.1524/12))^n - 1)

Then solve for n

n = 72 months

n = 6 years

Answer 2

Answer 6 years. Explanation if lisa only pays $20 minimum monthly payment, it would take her 76 months just to get done with her payment